Pullback started in month of September which is seasonally weak for the markets, BUT are we done!!! Is this the time to enter or remain on sidelines! What shall we expect in near term? BPNYA dropping rapidly and well below 70 mark while volatility ($VIX) rising rapidly dragging the market lower. On daily NYSE chart, we can see identical pattern repeating again. But will it bounce from current level the way it did last time? Weekly chart is telling us a different story. Long term trend line is broken while RSI dropped below 50 & MACD is trending downwards. All signs suggest that we are NOT out of the woods yet! NYUD could not bounce from EMA(21) which resulted in market drop along with RSI dropping below 50 mark. Long term chart are suggesting that even though we might get a preliminary bounce next week, we might get some choppy action in near term. Earnings season will start in next two weeks which shall add to volatility. Expect wide swings in near term before a meaningful rally.
What does it mean for our Investments?
Market in correction hence be alert...
2 Comments
R
10/6/2014 08:53:52 am
if one had taken the last BPNYA sell signal "July 14" they would have been out of the market since. Meanwhile from "July 14" to current QQQ is up 4%. Re-entry after exit guidelines could use some additional modification for folks willing to take extra risk. eg: if one were to enter the market again around Aug 11th (BPNYA rising ) and exiting around Sept 15 (BPNYA crossover downward). thoughts?
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Admin
10/6/2014 09:13:42 am
Check our blog post of 8/24/2014, that would be your riskier entry.
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